Profit Rises at American Business Bank

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American Business Bank on Thursday reported its fourth quarter net income jumped 50 percent as both assets and income grew in an improving economy.

The downtown Los Angeles bank, which also has operations in the San Fernando Valley and Orange County, reported fourth quarter net income of $2.4 million (61 cents per share), compared with $1.6 million (44 cents) a year earlier.

Interest income rose 12 percent to $7.4 million and noninterest income rose 64 percent to $735,000. Total assets grew 20 percent to $898 million. There was a 20 percent increase in deposits to $785 million. Loans increased more than 12 percent to $360 million, and there were no non-performing loans or charge offs.

“The bank continues to employ sound banking practices that have led to our outstanding growth and profitability,” said Chief Executive Don Johnson in a press release.

Shares were up $1.45, or 6.5 percent, to $23.85 in Friday midday trading on the Over-the-Counter Bulletin Board.